Item 4: Resolution Modifying Regional Wastewater SDC

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: Resolution 4875 Amending Systems Development Charge Methodology for Regional Wastewater System and Amending Resolution No. 4740 Meeting Date: May 22, 2006 Agenda Item Number: 4 Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 682-5216 ISSUE STATEMENT The purpose of this public hearing is to provide an opportunity for public comment regarding the proposed adoption by resolution of the Metropolitan Wastewater Management Commission’s (MWMC) requested modifications to the regional wastewater system development charge (SDC) methodology. The proposed resolution implements modifications to the regional wastewater SDC methodology by incorporating changes in Eugene’s SDC Methodologies document. BACKGROUND The MWMC has requested two amendments of the regional wastewater SDC methodology. One amendment is to the way the methodology categorizes eating and drinking establishments for purposes of their demand on capacity of the Regional Wastewater System. In addition, the MWMC is modifying its SDC Methodology to more clearly state the method for adjusting the cost of future projects for inflation. The proposed modification provides that future project costs may be adjusted from time to time using the nationally recognized Engineering News-Record’s national 20-city average Construction Cost Index (ENR 20-City CCI), the same index that is to be used to adjust the value of existing systems for inflation and that is used to periodically adjust the City’s other SDC rates. The regional wastewater SDC methodology was last modified by Resolution No. 4795, which adopted amended SDC rates for the Regional Wastewater System, effective July 1, 2004. The Mayor and City Council and interested persons were notified of intended amendments to Eugene Systems Development Charge (SDC) methodologies on February 16, 2006. A draft of the proposed modifications was made available for public review on March 17, 2006. A copy of this information has been available for viewing in the Council Office, as well as on the City’s web site. As noted in staff’s March 23, 2006, memorandum, it is likely that within this calendar year, subsequent to adoption of these proposed modifications to the regional wastewater SDC methodology, the MWMC may request adoption of an inflationary adjustment to regional wastewater SDC rates as per the proposed index. Staff understands that MWMC currently does not plan to proceed this calendar year with any proposed revisions to the regional wastewater project plan, as previously indicated. L:\CMO\2006 Council Agendas\M060522\S0605224.doc